Victoria developer gets plenty of bang for her buck

Non-profit developer who leveraged funding hopes rental project the first of many

After developing Loreen Place

After developing Loreen Place

On March 1, with no media fanfare, a new below-market apartment building quietly started accepting tenants.

The 52-unit building at 21 Gorge Rd. E. marks a new beginning for the site, which housed the notorious Capri Motel until its demolition in 2009.

For developer Alanna Holroyd, its successful completion proves rental housing can be achieved with only modest capital grants and no ongoing rental subsidies.

She named the building Loreen Place after her mother, Loreen Vandekerkhove.

“She was raised poor and she remembers it quite well,” says Holroyd, who created the non-profit Greater Victoria Rental Development Society in 2009.

She secured a $9.8-million loan to construct the building with only $740,000 in grants up front.

“In the business world, that is unheard of,” she says.

Traditionally, developers have needed to raise 50 per cent of the cost to get a loan.

Touring through one of the unrented units, Holroyd proudly points to the wide, white baseboards. “We really put thought into if we’d want to live here.”

Her desire for a beyond-the-basics facility has fuelled a good-humoured tug-of-war between Holroyd, the idealist, and her business partner, Kaye Melliship, the pragmatist.

“We’re going to reduce some of the extras in our next building,” says Melliship, executive director of the Greater Victoria Housing Society, which manages and co-owns Loreen Place.

“You have to be very realistic about the cost of maintaining the building.”

“But then it wouldn’t be so nice!” argues Holroyd.

With a grin she adds: “See how we work well together?”

Holroyd won the argument when it came to including features such a light above the tub (good for shaving, she says) and large garden beds in the interior courtyards.

“She even petitioned for in-suite washers and dryers,” Melliship says with an exasperated smile. On that final point, she put her foot down.

So far, 17 of the 52 units have been rented, and it turns out the rooms with the views aren’t the ones in demand.

All the cheapest, courtyard-facing units have been signed for. It’s a clear signal of where the biggest shortage lies in the rental continuum.

To be eligible to rent at Loreen Place, tenants’ household gross income can’t exceed $65,000. It targets low-to-moderate income earners – a wider mandate than most “affordable” housing projects.

Rent for two-bedroom apartments ranges from $875 to $1,300, making it not far off the average for Victoria. Throughout the metropolitan area, average rent was pegged at $1,000 in October, 2011, according to the Canadian Mortgage and Housing Corporation.

Over time, however, rents at Loreen Place will drop, as the mortgage is paid off.

“It will just get cheaper and cheaper,” Melliship says.

“It sounds like a great project,” says Tom Durning of the Tenant Resource and Advisory Centre.

“I hope other municipalities take note of that.”

While municipalities often don’t have spare land, they can encourage rental housing in other ways, such as through rezoning, he says.

“They can do density bonusing, they can ease parking restrictions. It’s not just a monetary thing,” he says. “In a case like this, you’re getting a 52-unit project and all they needed was a little bit of start-up money … Why can’t we do more of them?”

Holroyd is working on just that.

She has submitted a rezoning application to the City of Victoria to redevelop the Friendly Inn, right next door.

“We still have to ask for construction financing, but it’s nice to have something where they can kick the tires and see that the building actually was produced with only $740,000 in capital.”

rholmen@vicnews.com

Did you know?

• As of October 2011, the vacancy rate in the city of Victoria was 1.8 per cent, compared to a regional rate of 2.1. See related story.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Andrew Swanson was arrested Wednesday after he was wanted for an alleged choking assault and for obstructing police. (Black Press Media File Photo)
Victoria police arrest Andrew Swanson on warrants for alleged choking assault, obstruction

A member of the public spotted Swanson and called 911 before police came and made the arrest

(Black Press Media file photo)
Youth sustains minor injuries in stabbing at Saanich Plaza

Suspect under age of 16 taken into custody, no risk to the public, police say

Al Kowalko shows off the province’s first electric school bus, running kids to three elementary and two secondary schools on the West Shore. (Zoe Ducklow/News Staff)
West Shore proud owners of B.C.’s first electric school bus

No emissions, no fuel costs and less maintenance will offset the $750K upfront expense

A B.C. Centre for Disease Control map showing new COVID-19 cases by local health area for the week of April 25-May 1. (BCCDC image)
Vancouver Island’s COVID-19 case counts continue to trend down

Fewer than 200 active cases on the Island, down from highs of 500-plus earlier this spring

Sue Hodgson returns as publisher of the Peninsula News Review starting June 1. (Courtesy Sue Hodgson)
Peninsula News Review welcomes back Sue Hodgson as publisher

Dale Naftel takes helm of Oak Bay News as publisher

Protesters attempt to stop clear-cutting of old-growth trees in Fairy Creek near Port Renfrew. (Will O’Connell photo)
VIDEO: Workers, activists clash at site of Vancouver Island logging operation

Forest license holders asking for independent investigation into incident

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of May 4

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

(Black Press Media file photo)
POLL: Do you plan to travel on the Victoria Day long weekend?

It’s the unofficial start to the summer season. A time of barbecues,… Continue reading

Starting Tuesday, May 11, B.C. adults born in 1981 and earlier will be able to register for a vaccine dose. (Haley Ritchie/Black Press Media)
BC adults 40+ eligible to book COVID-19 vaccinations next week

Starting Tuesday, people born in 1981 and earlier will be able to schedule their inoculation against the virus

Parks Canada and Tla-o-qui-aht Tribal Parks dig the washed up Princess M out from sand along the south shore of the Pacific Rim National Park Reserve. (Nora O’Malley photo)
Rescue attempt costs man his boat off Pacific Rim National Park Reserve

Coast Guard response questioned after volunteer responder’s speedboat capsizes in heavy swells

Road sign on Highway 1 west of Hope warns drivers of COVID-19 essential travel road checks on the highways into the B.C. Interior. (Jessica Peters/Chilliwack Progress)
B.C. residents want travel checks at Alberta border, MLA says

Police road checks in place at highways out of Vancouver area

People line up for COVID-19 vaccination at a drop-in clinic at Cloverdale Recreation Centre on Wednesday, April 27, 2021. Public health officials have focused efforts on the Fraser Health region. (Aaron Hinks/Peace Arch News)
B.C. reports 1st vaccine-induced blood clot; 684 new COVID cases Thursday

Two million vaccine doses reached, hospital cases down

More than 6,000 camping reservations in British Columbia were cancelled as a result of a provincial order limiting travel between health regions. (Unsplash)
1 in 4 camping reservations cancelled in B.C. amid COVID-19 travel restrictions

More than 6,500 BC Parks campsite reservations for between April 19 and May 25 have been revoked

Most Read